If you’re a current homeowner over the age of 55 and looking to buy a new primary home, are you aware of Propositions 60 and 90? In the 1980s, California voters approved both Propositions 60 and 90.
Prop 60 allows for homeowners age 55 and older to transfer the base-year value of their primary home to a replacement home located in the same county. There are eligibility requirements besides age, so check with your county to confirm rules.
Prop 90 allows anyone over the age of 55 to move from one county to another and to transfer their property tax basis. This is a “local-option” law, so the county the homeowner is moving to must have adopted a Proposition 90 ordinance. Currently, I believe the following counties have a Prop 90 ordinance:
- El Dorado
- Los Angeles
- San Diego
- San Mateo
- Santa Clara
Definitely check with the County Assessor’s office as well as your tax advisor in either of these situations.
These propositions allow significant payment relief in buying a new home and not having to consider a new and higher tax base at the new purchase price, especially for homeowners that will be entering retirement in the next decade or so.